Do Prepaid Cards Offer Better Exchange Rates?

One area which often causes stress for travelers is money. You do not want to have to carry around large sums of cash but equally you will not want to take your credit and debit card which can be expensive to use and it would be a nightmare if it was lost as it could ruin the trip and also see you lose a lot of money which could be hard to recoup.

One excellent solution to this is a prepaid card – this is a card which is loaded with a particular currency which you can then use overseas.

How They Work

Prepaid cards work by signing up with a company who provide you with a card and PIN. You then simply transfer funds from your bank account to the prepaid card in the currency that you require.

This card can then easily be used in the country much like you would use a regular debit card but there will be no fees and if you lose the card you will only lose the amount on there. You can also easily top up the card either online or over the phone.

This all makes budgeting for a holiday much simpler and it makes it much easier and safer for you to use money whether this is taking money out at an ATM or paying for something directly with the prepaid card.

Rates

It is clear why so many travelers are starting to use prepaid cards when they go abroad, but what about the exchange rates?

This will depend on where you go but often you will find that prepaid cards offer better exchange rates than you would find at the airport or with traveler’s cheques.

Additionally, you may also get better rates the earlier that you make the exchange depending on where you obtain the card from and what the current exchange rates are.

It is a smart move to do your research and to keep your eyes on the rates so that you can choose the right moment to make the exchange.

There are many different providers of prepaid cards and each will have their own rates, fees and ways of topping up. This means that you should shop around before making a decision and try to find one which best suits your particular needs.

Overall, prepaid cards are an excellent way to manage your money while traveling. They can make it easy and safe to use money while overseas and you could also benefit from better exchange rates and no transaction fees.

It eliminates the need to carry around large sums or traveler’s cheques which can make people feel uncomfortable and you cannot run up debt as the card will simply stop working when funds are out.